Electricity tariff hike looms as Gencos intensify pressure on NERC
Electricity tariffs may soon increase as power generation companies (Gencos) push the Nigerian Electricity Regulatory Commission (NERC) to reflect the recent rise in domestic gas prices in tariff calculations.
The CEO of the Association of Power Generation Companies, Joy Ogaji, said gas costs are a “pass-through” and must be captured in pricing.
However, she stressed that the sector’s biggest problem is not tariffs but poor payment discipline, noting that many invoices remain unpaid regardless of price levels.
Ogaji also flagged the lack of “bankable demand,” questioning how many Nigerians actually pay for electricity and pointing to weak transparency in collections. She warned that without reforms and stronger enforcement, the sector will remain stagnant.
PowerUp Nigeria’s Executive Director, Adetayo Adegbenle, said higher gas prices will inevitably drive up tariffs and subsidies.
He added that even without an immediate tariff review, generation costs and invoices will still rise, urging the government to consider a fully deregulated, contract-based market.
Meanwhile, consumer advocate Kunle Olubiyo criticised the gas pricing framework as unclear, arguing that inefficiencies like poor metering and energy losses significantly inflate costs. Fixing these, he said, could reduce consumer charges.
With gas accounting for over 70% of Nigeria’s electricity generation, experts warn that without coordinated reforms in pricing, payments, and transparency, the latest increase could further strain the already fragile power sector.
Electricity tariff hike looms as Gencos intensify pressure on NERC
Electricity tariffs may soon increase as power generation companies (Gencos) push the Nigerian Electricity Regulatory Commission (NERC) to reflect the recent rise in domestic gas prices in tariff calculations.
The CEO of the Association of Power Generation Companies, Joy Ogaji, said gas costs are a “pass-through” and must be captured in pricing.
However, she stressed that the sector’s biggest problem is not tariffs but poor payment discipline, noting that many invoices remain unpaid regardless of price levels.
Ogaji also flagged the lack of “bankable demand,” questioning how many Nigerians actually pay for electricity and pointing to weak transparency in collections. She warned that without reforms and stronger enforcement, the sector will remain stagnant.
PowerUp Nigeria’s Executive Director, Adetayo Adegbenle, said higher gas prices will inevitably drive up tariffs and subsidies.
He added that even without an immediate tariff review, generation costs and invoices will still rise, urging the government to consider a fully deregulated, contract-based market.
Meanwhile, consumer advocate Kunle Olubiyo criticised the gas pricing framework as unclear, arguing that inefficiencies like poor metering and energy losses significantly inflate costs. Fixing these, he said, could reduce consumer charges.
With gas accounting for over 70% of Nigeria’s electricity generation, experts warn that without coordinated reforms in pricing, payments, and transparency, the latest increase could further strain the already fragile power sector.
